PRINCIPLES OF NATURAL LAW: The Foundations of Money

“All the perplexities, confusion and distress in America arise not from defects in their Constitution or Confederation, nor from want of honor or virtue, so much as downright ignorance of the nature of coin, credit, and circulation.”

–John Adams

If John Adams felt this strongly in his time — when the average American was far more educated than today — I wonder what he would think today.  We’ve had some two-hundred and thirty-nine years to build a better understanding of the foundational principles underlying money and monetary practices.  Yet, for all our pride and arrogance, we not only haven’t gained in our understanding, we’ve regressed.

Natural law governs every aspect of this universe.  This includes money and monetary practices.  Every time Man ignores or tries to change Natural Law, Natural Law eventually re-asserts itself.  This is what Rudyard Kipling’s poem, “Gods of the Copybook Heading” is all about.  If you’ve never read it, I urge you to do so.  Then consider that the principles that govern money and monetary policy are part of Natural Law.  Therefore, it only stands to reason that, if we ignore those principles, Natural Law will — eventually — reassert itself.  History is clear on this, and if we look with wisdom and understanding, we will realize that is what recessions and depressions and hyper-inflation are: evidence of Natural Law reasserting itself.  Well, we are about to experience a serious reality check.  We have been ignoring the laws governing money for far too long and on far too broad a scale.  This time, when Natural Law reasserts itself, it will likely be on a global scale.

First, we need to understand what money is.  Money is nothing more than a convenient means to represent and trade in our labor.  If you do not understand this, I urge you to work your way through my previous posts on the basics of Natural Law.  So, we can think of that $1 bill in our pocket as a representation or quantification of a set amount of labor.  Since our labor is an extension of our free will, this then means that money is a quantification of our free will; of our essence as an individual.  Once we understand this, we can understand why so many people try so hard to control money and monetary practices.  They are no different from those who seek to control and enslave humanity through political or military means.  The only difference is in the method they have chosen to seek that control over others.

Now, let’s address the fact — FACT — that the majority of Americans are utterly clueless when it comes to the Natural Laws governing money and monetary practices.  Do you remember when Ron Paul was laughed at for saying he could buy a gallon of gas for a dime during the last Presidential Primary Debates?

Now, did you notice how they tried to cut Paul off and not let him explain what he was saying?  Did you ever wonder why?  Why did Paul say this?  Why did the moderator try to cut him off?  And why did so many people laugh at him?  HINT: it is directly connected to the gold standard, and to the reason FDR made private ownership of gold illegal.

There is a reason that gold and silver have always been used to support monetary systems.  They maintain their value.  This is what Ron Paul was trying to explain in that debate.  If we had still been on the gold standard at the time, then the weight of a silver dime would have been worth the cost of a gallon of gasoline.  If you listen to talk radio, you may have heard a talk show host use the gold $20 coin as another example of this principle.  At the time of our founding, a $20 gold piece would have bought you a very nice suit.  Today, if you had that same $20 gold piece, it would still buy you a very nice suit.  SO what changed and why?

What changed is our government took us off the gold standard.  Our money used to be backed by gold and silver.  You could take a $1 silver certificate to the bank and get $1 in silver in exchange.  But this is a system tied to Natural Law, and because Natural Law does not allow for debtor-based monetary systems, and that is what our government wanted, they took us off the gold standard and put us on what is known as a fiat monetary system.  When they did that, it gave them far more control over  each of us than we realize.  In very real terms, they made us all slaves.  Remember, money = labor = free will, so if I can control your money, I can control your labor and — to a large extent — even your will.

The first thing our fiat monetary system does is allow the government to run huge, open-ended deficits.  It also allows our economy to be based on debt rather than real wealth.  The problem with both of these is that they cannot last.  Eventually they must collapse.  No debt-based monetary system has ever sustained itself for more than a hundred years or so.  The only thing that has saved America — so far — was her free market tradition and the fact that WW II eliminated any and all competition.  However, the free market has been all but destroyed and the world has more than recovered from WW II.  Yet, our leaders — in their arrogance — refuse to realize that this has set America up for a huge crash.

The next thing this fiat money system does is allow those who control it to steal your money.  Inflation is the traditional method by which the “haves” steal what little the “have-nots” manage to acquire.  By devaluing your money, they steal your labor.  If you have to work twice as long or hard to earn the same buying power, they have stolen your labor.  What this does is limit your freedom.  If you once had time to pursue political agendas, but now have to work twice as hard and long just to survive, you are no longer a political threat because you no longer have the time to dedicate to political efforts.  This is what they are doing when they print money.  Also, when you hear the media talking about the Federal Reserve “monetizing” our nation’s debt, understand that this is another way of saying they are printing money.  Eventually, this will lead to economic collapse.

Finally, by keeping us on a fiat money system, they limit our freedom by removing privacy.  The laws restrict how much cash currency you can carry.  Even then, your money has electronic strips in it so they can count what you are carrying from a distance using detection devices.  This is so they can control how you use your money (labor/free will).   By doing this, and by making banks report your transactions, the government is extending their control over your life.

Now, don’t be fooled: there is real fascism here.  The banks are not victims of the government in all this, they are willing partners in it.  If you doubt me, look into something.  Go see if you still own the money you have in the bank, or has that money been turned into a legal loan to your bank?  Yes, when you make a deposit now, you are making a loan to that bank.  Now, think about this.  If the government owes so much it can never repay it — and it does — what will happen when our economy collapses and your back does not have the money to pay you back?  Remember, the government is already broke, so your FDIC protection is just words.  SO what will happen?  AT best, the government will just print more money and give it to you — which is exactly how the Weimar Republic destroyed itself.  Only someone totally ignorant of the principles underlying money can think that what happened to the Weimar Republic cannot happen to America, but those who do know and understand the Natural Law behind money know that it not only can happen, we’re probably past the point where it must happen.  Incidentally, this is why Keynesian economics doesn’t work and never will.  Keynes was one of those who thought he could re-write the Natural Laws governing money.  He might as well have declared he had re-written the laws governing gravity.  He would have been just as correct.

Now, here is the key to correcting the mess we have made: we must return to the principles of Natural Law which govern money.  That means getting off fiat money system and back on to something like the gold standard.  I understand that many who support the corporate system will object to this as it will make their economic system all but impossible.  That is because all of Wall Street is fake.  If the market crashes, fake wealth would be lost, but nothing more.  The real wealth — the buildings, machines and people operating them will all continue to exist, but the paper value will have disappeared.  However, if we had a gold-based system, then we could not have the same crash.  Yes, we could still loose the fake, on paper only value of things, like we did in the Great Depression, but the money you and I have in our hands will remain the same.  If we had $20 in gold before such a crash, it will still buy the same if not more in good sand services.

In this sense, a gold-based monetary system favors the individual and not the government as it limits the control the government has over the individual.  This is why FDR made private gold ownership illegal: so he could further his control over the individual.  You see, when you have gold in your pocket, the government cannot control what it is worth.  You and I do; the whole world does.  What’s more, the government cannot steal your money while it is in the bank.  In fact, if the government makes a mistake and causes inflation, you and I — those who save and follow Natural Law practices by staying our of debt — the government makes us more wealthy.  Suppose you have one of those $20 gold pieces.  Now imagine the government prints money and — over night — the paper $1 is worth $0.01 in real buying power.  Now you need $100 to buy the same thing your $1 bought yesterday.  However, that $20 gold piece is now worth $2000 — or more!  In no way will it be worth less in buying power than it was the day before.  In most cases, it will be worth more.

This is how money works when it is allowed to operate by Natural Law.  When monetary systems are tied to the principles of Natural Law, then they favor those who govern themselves by those same principles.  The ‘rich’ cannot exploit the poor nearly as easily — especially if the rule of law is also under the rule of Natural Law.  Nor can the government control you and I as easily as they can if we are forced to use fiat money because they cannot steel your money while you sleep by manipulating its value.  In short: a monetary system governed by the principles of Natural Law supports and promotes the individual and individual liberty.  A fiat system supports and promotes control and theft. It is that simple, and those who would tell you it is not are telling you they are part of the cabal who wants to control you.  Yes, I mean to say that anyone who tries to tell you it is not this simple is looking to control you.  Any time men make things complicated, it is a sure indication that they are looking for ways to ignore or re-write Natural Law.  never forget that.


Just to make it a little easier to sleep tonight…

Evil people like George Soros have taken advantage of fiat money to crash governments and steal the savings of retired people.  That’s what he did to England (and is accused of doing to several other nations).  But don’t worry, ‘geniuses’ like Bill Gates are fighting this by pushing for a paperless money system.  That will be harder to manipulate (did my sarcasm come through thick enough there?  🙂  )

OH!  And there are other people who understand how Natural Law works.  They are working to get the entire world back on a sound monetary system.  They have been buying gold and working to establish a new currency based on gold and sound monetary practices.  So, no worries, I am sure Russia and China have our best interest in mind as they work to remove the U.S. $1 as the world reserve currency.  After all, if they succeed, the world will be better off — well, the world minus the U.S.  We will collapse if/when this happens, but that will open the door to someone who want sot correct our mistakes 😀  (again, is my sarcasm coming through OK?)


10 responses to “PRINCIPLES OF NATURAL LAW: The Foundations of Money

  1. Pingback: What did Our Founders Know, anyway? | The Rio Norte Line

  2. Spot on Joe! So simple when you understand the basics and put the nuances aside.

    • ArthurT,

      Thanks, but I don’t deserve any credit here. All I did was state what everyone “should” be able to figure out on their own. This stuff is all ‘self-evident’ — we just need to take time to actually think. 🙂

  3. Pingback: PRINCIPLES OF NATURAL LAW: There is ‘Fairness’ Under Natural Law | THE ROAD TO CONCORD

  4. Pingback: “Fairness” = Lawlessness | The Rio Norte Line

  5. Yes, gold holds its value — uh, except when it was worth $1800 per ounce in 2012 and now is worth $1300 per ounce, a 28% loss for anyone foolish enough to own it.

    Folks, gold is just a metal, with very limited utility compared with other metals like iron, aluminum, uranium, copper, and platinum. It never disappears, and with mining, more becomes available every day.

    Further, it pays no interest, and it is expensive to ship, store and insure. These costs give it all the elements of a “wasting asset.”

    Gold sells under the “Bigger Fool” theory (You buy it hoping a bigger fool will pay you more for it.) The only people to make money on gold are the con artists who sell it to you.

    • Folks,

      Rodger is under the same misunderstanding as most Americans: the misunderstanding that caused John Adams to say:

      “All the perplexities, confusion and distress in America arise not from defects in their Constitution or Confederation, nor from want of honor or virtue, so much as downright ignorance of the nature of coin, credit, and circulation.”

      Gold DOES have a value — because it is limited. We cannot make more gold and, in spite of his claims to the contrary, we are NOT digging up more every day. In fact, the world uses about as much gold as it digs up. That is because it DOES have utility. It is in all major modern electronics — including your air bag triggers. So do not be fooled on these points.

      Next, gold DOES pay interest. A $20 gold coin from 1776 would buy you one of the finest suits available. If you had that coin today, you would STILL be able to buy a comparable suit. This is because gold actually holds its value where paper or fiat money does not. It depreciates through inflation. Besides, when was the last time a bank paid interest in this country? In many places, they are starting to talk about CHARGING you to hold your money. That is reverse or negative interest.

      Is gold subject to price manipulations? Yes, so long as it is controlled by commodities speculators. But is it as worthless as Rodger would like you to think? NOT BY A LONG SHOT!

  6. Yes, all you folks who bought gold in 1776, might have a profit today. Or not, depending on what you had to spend for storage, shipping and insurance, and also depending on alternative investment results.

    And no, gold doesn’t pay Interest. You’re confusing price with interest.

    And no, gold doesn’t “hold its value.” It bounces up and down quite dramatically, as the people who have owned gold for the past five years will tell you.

    And yes, gold is subject to price manipulation, and the bid/ask spread for bullion is huge compared with the S&P index. So you lose when you buy, and you lose again when you sell.

    Who has made a profit on gold? Those dealers who tell you about the cost of suits in 1776, and who scare you into buying an almost useless metal. You would have been better off to buy lead, zinc, or tin, and much, much, much better off to buy the S&P.

    But, if you want to put your money into gold, enjoy. It’s your loss.

    • Once again, our reader demonstrates ignorance as to the fundamental nature of money. he says gold has no value? Really> How much is a denarius worth today? NOTHING! But how much is an ancient gold coin worth? Even if you just take it at the value of the gold and not its historic value. It is worth whatever the weight of the gold is. You see, fiat money is what is worthless. It only has value as long as people think it does.

      In Weimar Germany, they once had to pay hundreds of thousands of Reichmarks for a cup of coffee because the government destroyed their fiat (paper) money. But an American tourist could buy that same cup of coffee for a dime. Why? Because the silver in that dime was real money. It had value based on something totally independent of what the government said it was worth. This is why gold and silver have been the medium of currency exchange since history began.

      No, do not be fooled: our dear reader here is on a rant based in fear and ignorance. He or she does not understand how hard currency works compared to fiat (paper) money — pure and simple.

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